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Uralkali comments on potash agreement between Belarus and China

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World Fertilizer,

Uralkali has said that the commercial conditions of a potash supply agreement made between the Belarusian Potash Company (BPC) and a Chinese consortium last week "do not reflect the real market situation that is developing at this time, or its outlook. The price that has been agreed is not appropriate either for the length of that particular contract, or for the industry as a whole."

Uralkali added that "If contracts are agreed at the price levels agreed by BPC, in the long term this will drive producers to cut their capital investment and, ultimately, will lead to a shortage of potassium chloride in the market."

The company has said it will need to consider whether it is prepared to conclude contracts at the price set by BPC.

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